Are Debit Cards More Dangerous Than Credit Cards?!
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- เผยแพร่เมื่อ 21 ก.ย. 2024
- Are Debit Cards More Dangerous Than Credit Cards?!
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Treat your debit card and credit card with the utmost respect. Having said this, I have never been in credit card debt. I have a certain limit I charge each month, and never go above that set number.
The credit card section was one of the best and most hilarious answers I’ve ever seen😂
CC are good to use as long as you use them responsibly. If you use it like it's open season on money, then you probably shouldn't get one.
Yes it is not a gift card.
Thanks for leaving the live stream up later in the day!
The Money Guy Show working to get on the Ramsey Solutions’ Naughty List, right before the holidays. Say goodbye to any Christmas presents or party invites. 😁
screw Ramsey and his conservative Christian BS
I don't think they care. Ramsey is great for the masses. The Money Guy Show is great for the optimized nerd.
Yeah Dave is kind of a tool
@@jroysdon I don't think Dave Ramsey is even good for the masses. Putting off all investing and missing out on an employer match while paying down low interest debt is just dumb. His investing advice is horrible and his assumptions are nonsensical. The only good advice he gives is to tell your money where to go instead of wondering where it went.
A good way to think about it: Suze Orman can be thought of as Money 101, Money Guy as Money 201, Mr. Money Mustache as Money 301, and Dave Ramsey as the after-church lunch hour of money.
The most annoying thing about credit, is that many creditors can hurt your credit score; but those same creditors do not necessarily help your credit when you make timely payments.
same card here. I only use the one CC to keep things simpler
A. Credit card can be used like a debit card by prepaying.(holding a positive balance).and using a checkbook app on your phone.
I refuse to have a debit card because they have inferior federal protections compared to credit cards. I even insist that my bank issue me an ATM card that cannot be used as a debit card.
Would love you guys to discuss LLCs. Forming LLCs for real estate investment properties. A deeper dive on this subject would be awesome.
Thank you. The debit and credit is not that special. However, the video is very useful in general. I’ve been with you guys for while. Thank you for all the talks.
I have a Fidelity card, but my go to card pays 2.625% on everything. I also have other cards that offer higher rewards on categories.
I use the credit card for auto bill pay gas and on line and my debit card or cash for small day to day purchases
I have never paid a penny of interest on my credit cards 💳 ever. I got the AMEX Platinum (Charles Schwab Card) you can cash out points into an investment Acct / Roth IRA at 1.1 cent / per point. I am also Active Duty Military so they waive all annual fees on my credits cards. All the perks none of the fees .
Just to argue the fraud part a bit, if someone steals you cc they can run up the balance by thousands vs with a debit card they can only run up to what you have in your account in that moment.
Regardless tho, if your debit card is through visa, you still get the same protections. I've had my debit card compromised a lot over the years, and never had an issue with my bank correctly the issue in a timely manner.
Correct..
don’t use a credit card if your not financially responsible
However be careful with debit cards they are connected to an over draft
I lost my debit card actually. I'm pretty sure it's somewhere in my home. But I don't want to go through the folders to find it. Even if I find it I can't remember the pin
I agree the wife needs a credit card. If something happens to you, your wife needs cards in her name for credit history and access to credit.
26:00 - 33:00 well said.
I only use no annual fee bank issued cash back cards. No airline, hotel, or retailer cards or high annual fee coupon book style cards. I record every transaction on them subtracted them from my available cash balance. The secret to success is not treating them like a loan and more like cash or a debit card.
Yup. Real estate is definitely not passive. This is coming from real estate family member.
Only passive income is winning the lottery or inheritance.
Also, 300k student loans @ 7% is just over $2,300 / month.
....that is more than my home mortgage, taxes, insurance (all) and car loan all together!
And I went to college as well.
Never used a credit card, never overdrafts on debit. Same with my wife.
Excellent credit score, no problem getting 2x mortgages.
I use the same as Bo, plus USBank Rewards+ (aka Rewards Plus) and set the 5% categories to "Home Utilities" and "TV, Internet & Streaming" and we have those items set to use USBank and just keep the card in the safe (which is great, we don't have to think about it vs. the other ones). We just apply the rewards as cash to the statement balance, and then invest an equal amount in our Taxable Brokerage as we won't be having to pay that amount toward the USBank card balance.
I was going to make my own post, but I see you have already done it for me. We have the usbank cash+ card and can choose 2 5% categories and we do home utilities and fast food for the 5% categories. The 2% category is set to restaurants as well.
@@GenosHK CitiCostco for 3% on restaurants (not sure where fast food fits) and travel. Fidelity Rewards is 2% on everything, so that's our catch-all card (sounds like Bo's as well).
I use my Fidelity credit card and get investment cash back. As long as the balance is paid off monthly, it's a no brainer
I closed most of my credit cards only kept one and barely use it . I’m trying Dave Ramsey way and I like it cause I’m only using money I have in bank account not borrowing from CC..
Or you can have your cake and eat it too. How? Only spend on your CC what you have in cash in the bank. If you're using an app like YNAB or MoneyWise, you'll have an electronic envelope system to track this and never spend more on your CC than you have in the bank. A second way to make sure you do this: pay off your credit card(s) in full the day BEFORE payday. Again, this proves that you're never "floating" money you don't have. But, if you can't do these things, the safest is to just stick with a debit card.
If there was ever a credit card scam on gas pumps, where I live, I would never have known about it since I use the Conoco credit card and I pay using their app which give me $0.25 off/gallon, so the app authorized the pump to allow me to fill up my car. My credit card doesn't go into the pump credit card reader.
Yup, avoid using a card in a gas pump. Highest fraud locations ever! The only place I'll use my CC is at the Costco gas pump because they have an attendant watching and regularly checking for "skimmers" and have tamper-evident stickers all over; and I just use the NFC contact-less payment option and not swiping the card. Instead, I keep $100-200 in cash for my local gas station fill-ups between visiting Costco every 2 weeks.
Hold cash in a bank account also hold $1000 in a safe at home
I also make use of a safe deposit box at the bank to limit cash in the home
So how many would sign up for a card for a year or less rewards? Capital One is 5% at Walmart for 12 months. Chase is 5% at Walmart for Q4 2022 (rewards rotate every quarter to different things). I have neither of these cards; can't justify signing up just to get an extra 3% and then have another account to close out. We used to do the "rotating rewards" cards, but I just can't do that; too much of a hassle to remember what is changing to what. It's enough for us to remember this order: CitiCostco is 4% gas at Costco, 3% restaurant/travel, Fidelity Visa 2% everything else (which is the same as Costco, but we can redeem these every month for our taxable brokerage, vs. waiting to redeem it once a year on Costco purchases we many not really need but see it as "fun money"). We don't really have to remember that Utilities and TV/Streaming is paid with US Bank for 5% (as that's the only card we have on file with those accounts).
I have a real estate security in my roth Ira- that's passive income.
I pretty much stopped using my debit card. I ise the Marriott rewards or Sam’s Club.
Man, British credit cards don't get any rewards. I'd love a 2% or 5% cash back card!
Haven't watched yet, but I'm certain you're going to say that debit cards are riskier than credit cards from a fraud standpoint.
truth
This was the original reason to why I stopped using debit cards, had a large check out, and needed it to clear, when someone in China starting charging fraudulent charges, and the check barely cleared and decided no thank you, credit cards have buffer before fraud is taking your money, sure you can report it, but in the debit scenario, your own cash is caught in limbo, whereas a credit card it's not and leaves you more options, so I just use the cc all the time and pay off 100% of the balance every month, and have never looked back.
I've gotten all 3 of my CCs paid off and quit carrying them.. hearing you guys using 5/6 cards was disappointing .. it's not that i cant afford to pay them off, it's just to easy to swipe and end up nickel & dimeing myself.. i carry only my weekly cash allowance now and my gas card now
I use credit cards for everything. I do not buy things that I do not need. I pay the balance in full every month. If you handle money wisely, it doesn’t matter which form you use.
They've learned to self-limit how much they spend. That's hard for the vast majority of us (myself included). Instead, I highly recommend using online budgeting apps like YNAB or MoneyWise that track your spending online. With either of these, each transaction is tracked and it keeps you from over-spending (but you still have to check your app to see if you have money to spend; if you won't do that, then even the smartest budgeting app won't help you).
I only have one credit card and I hate the thing. It is best to have zero. Having 5 or 6 credit cards is like having 5 or 6 camp fires spread out in the woods. You are just increasing you risk of a forest fire.
Bo says: "Don't do Store specific credit cards."
Bo does: "We have Amazon, Target, and Nordstrom cards"
Do what Bo says, not what Bo does. Unless you're millionaires like Brian and Bo, then do whatever you want.
millionaires? 🤣
@@ericdahl2915 Brian's already there, almost multi. Bo is probably well on his way. If you watched you might know that
One thing to consider is how disciplined both of them are. They won't buy something because they consider the cost vs. value of the item vs. their goals. The rest of us aren't there yet and should have some "bumpers" to keep on track - stuff like an online budget tracking app like MoneyWise or YNAB; if folks really struggle with over-spending, then perhaps going strictly no-CC for a time; and then easing into have a CC for just utilities (and I'd say sending off that CC payment for the entire current balance the day before payday, and not just monthly or waiting for the due date which introduces the risk of floating debt that you can't cover with cash at any given time).
@@ericdahl2915 they have mentioned in the past they are millionaires.
My wife uses a CC and I only use DC. Budgeting is a nightmare because of credit cards
Why would it be a nightmare? Just pretend like the CC expenses are the same as debit card. I budget $100 for groceries, spend $100 on my credit card at the grocery store, mark that the $100 was spent in my budget, and pay the CC statement in full at the end of the month. Simple
@@pey7777 it's a nightmare for those who spend more than they earn
My wife uses the credit card and I use the debit card.
The airport lounge access from AMEX Platinum paid for itself with airport lounge access during a recent 3 day involuntary layover in a European airport. And just used points for a free trip to Austin. And free Clear and Global Traveller. And hotel and airline credits. And ….
I have over 800 credit score and only ever had one card. However, since mine gets 1.5% back and the Fidelity one gets 2% back, I’m considering switching. If I do, should I close my old one or just keep it open and never use? Which is better for credit score?
Well they say to keep your old credit card open but only use it once a year to keep your oldest credit line active since it keeps your score up. Some suggest using it every 6 months. I personally would close it so that I only have one credit card to keep up with instead of two but that is just me and that will cause your score to drop since you closed your oldest line of credit.
@@michaelcarter266 Thank you! Just to add to this, I called my card company since writing this comment and they said I would need to make a transaction ever my 3 months to avoid auto closing. And they are one of the big guys.